Hot Stocks: J&J, Merck, Corning and More!

Johnson & Johnson shares slipped 1.6% to $63.90 premarket after it said Wednesday it plans to buy medical-device maker Synthes in a $21.3 billion deal that would give the U.S. health-products giant a significant lead in the market for surgical devices used to treat fractures and traumatic injuries.

Ericsson, the world’s largest maker of network equipment, Wednesday reported a stronger than expected rise in sales and profit on continued strong demand for wireless technology, but cautioned that its supply chain and inventory costs could be hit by problems related to the Japanese earthquake. Shares surged 10% to $14.50 premarket.

Liquid-crystal-display maker AU Optronics Corp. said Wednesday it swung to a first-quarter net loss as panel prices fell on sluggish television demand but expects earnings to improve gradually throughout the year with a rebound in panel prices and demand. Shares fell 6.5% to $8.12 in recent premarket trading.

CenturyLink Inc. signed a definitive agreement to acquire Savvis Inc. for about $2.5 billion in cash and stock, as the telecom provider looks to expand its hosting and cloud capabilities for business customers. The offer values Savvis, an Internet infrastructure company, at $40 a share, an 11% premium to Tuesday’s closing price. Shares of Savvis rose 8.1% to $38.95 premarket.

Merck & Co.’s board approved up to an additional $5 billion in share buybacks, the latest sign of a recent preference for using cash to return value to shareholders. Shares edged up 0.8% to $35.35 in recent premarket trading.

Whirlpool Corp.’s first-quarter profit rose 3% from a year-earlier period stung by a recall-related charge as sales topped analysts’ views but margins weakened. Shares of the appliance maker, whose brands include KitchenAid and Maytag, rose 4% to $91.40 premarket.

Hess Corp.’s first-quarter earnings soared 73% as the oil and gas company’s exploration and production operations benefited from stronger oil prices, offsetting continued weakness at its refining and marketing business. Shares were up 3.5% at $83.50 in premarket trading as revenue topped analysts’ expectations.

Calgary’s Nexen Inc., which posted stronger first-quarter earnings and cash flow on the back of stronger Brent crude oil pricing, has received board approval to develop the Golden Eagle oil project in the North Sea, a key component in its growth plans. But shares fell 5% to $23.50 as the oil and gas producer’s earnings-per-share came in below analysts’ estimates.

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